Toyota Lowers Outlook for Fiscal Year 2012
Effects of the March 11 earthquake on Japan’s east coast reflected in the automaker’s FY2012 estimates.
TOKYO — Issuing its full-year forecast three months after the March 11 earthquake that struck Japan’s east coast, Toyota Motor Corp. said it expects net profit this fiscal year to fall 31 percent, or $3.7 billion, to 280 million yen.
The company was expected to issue its forecast along with its annual results on May 11, but officials said they were unable to assess the impact of the earthquake and ensuing tsunami. And although the company is recovering from the disasters faster than expected, the June 10 forecast report indicated that it would take until November for the company to fully recover.
Consolidated operating income is expected to end the year at $3.7 billion, a decrease of 36 percent, or $2 billion, from last year.
A strong Yen also is expected to eat into Toyota’s profits, which will add more pressure to move production overseas. The forecast puts the impact at 100 billion yen.
Including sales of Hino Motors and Daihatsu Motor Co., Toyota global sales forecast is expected to fall 1 percent to 7.24 million vehicles, which means the company almost certain to lose its No. 1 ranking as the world’s biggest automaker.
“We must closely watch the various risks, such as the risks of rising oil prices and the continuing high unemployment rate in the United States and Europe,” the company stated in its forecast report. “The Japanese economy is expected to pick up gradually as well, backed by recovering economies overseas and the various effects of government policies. However, the damage by the Great East Japan Earthquake was widespread and serious, and will continue to significantly affect the Japanese economy, and the momentum of Japan’s economic recovery will weaken for the time being.”
To view key documents from the FY2012 forecast, click here.
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